Accounting for IGCSE & O level - Accounting Procedures (Section 17 - No. 12)
How does the disposal of a non-current asset affect the statement of financial position?
Decreases the carrying amount of the asset.
Decreases total assets.
Increases total liabilities.
Decreases retained earnings.
Explanation
The disposal removes the asset and any related accumulated depreciation, so the assets are reduced.
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